EIN: 300710790
UEI: E7E3GH3MD5H5
Data as of August 20, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 9, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by April 9, 2026, which was (134 days ago).
What is a management decision? →Condition: During testing of allowable costs/cost principles charged to the federal program, we identified a $450,000 payment made to a former executive in settlement of an employment dispute. This cost was charged directly to the federal program. Criteria: Title 2, CFR, Part 200, Subpart E-Cost Principles, Basic Considerations, section 200.403, Factors Affecting Allowability of Costs, states, in part, that “Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: a) be necessary and reasonable for the performance of the Federal award, b) be properly documented showing the business nature of the charge. Cause: Internal controls over allowable costs compliance requirements were not properly designed and were not placed in operation. Management is responsible for compliance with the requirements of allowable costs and for the design, implementation, and maintenance of effective internal controls over compliance with the requirements of laws, statutes, regulations, rules, and provisions of grant agreements applicable to its federal program. Effect: As a result, $450,000 of unallowable costs were charged to the program. This represents questioned costs that must be refunded to the federal awarding agency or otherwise resolved. Questioned Costs: $450,000 Recommendation: We recommend the Agency develop a written policies and procedures manual for allowable/unallowable costs compliance, which should include a checklist detailing all the necessary steps to ensure proper review of all costs charged to the federal program.
Strengthen compliance efforts and mitigate risk, staff will consult a qualified third-party professional before executing any transaction that may be unallowable, ensuring adherence to funding. If unallowable expenses are identified, staff will quickly coordinate with the appropriate state agency to resolve issue.
2023-004
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 5, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 5, 2024, which was (624 days ago).
What is a management decision? →Condition: We identified unallowable costs totaling $11,454, comprised of $2,275 of employee meals and $9,179 of investment advisory fees. Criteria: Title 2, CFR, Part 200, Subpart E-Cost Principles, Basic Considerations, section 200.403, Factors Affecting Allowability of Costs, states, in part, that “Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: a) be necessary and reasonable for the performance of the Federal award, b) be properly documented showing the business nature of the charge. Cause: Internal controls over reporting compliance requirements were not properly designed and were not placed in operation. Management is responsible for compliance with the requirements of allowable/unallowable costs and for the design, implementation, and maintenance of effective internal controls over compliance with the requirements of laws, statutes, regulations, rules, and provisions of grant agreements applicable to its federal program. Effect: The lack of internal controls and procedures over compliance increases the risk of using federal funds for unallowable costs. Recommendation: We recommend the Agency develop a written policies and procedures manual for allowable/unallowable costs compliance, which should include a checklist detailing all the necessary steps to ensure a proper review of all costs charged to the federal program.
The Agency will no longer hold assets in an advisory investment account but transfer assets to a qualified bank for low-risk savings, money market, or certificate of deposit account where no advisory fees are charged. The Agency will no longer sponsor employee meals but utilize federal awards according to HHSS expenditure guidelines.
Condition: During our audit, we found that the Agency’s Board did not review and approve material disbursements charged to the federal program. Criteria: The Agency’s policy states that the Board’s review and approval are required for the transactions over $1,000 charged to the federal program. Cause: Internal controls over material disbursements charged to the federal program were not properly implemented or operating effectively. Effect: Internal controls are not functioning effectively, which increases the risk of error and fraud. Recommendation: We recommend the Agency develop a written policies and procedures manual which should include a checklist detailing all the necessary steps to ensure a proper review of all costs charged to the federal program.
A board member will be designated to review and approve all federal award disbursements of $1,000 r higher prior to cash disbursement.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on July 25, 2021. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by January 25, 2022, which was (1669 days ago).
What is a management decision? →Condition: Upon gaining an understanding of the Agency?s internal control processes and procedures, Auditor determined that incompatible duties are performed by the same employee with limited subsequent review by another party. Criteria: A strong system of internal controls requires the segregation of duties of certain processes to reduce the risk of misstatement due to error or fraud. In general, the following functions should be performed by separate employees as they are deemed to be incompatible duties: (1) custody of assets, (2) authorization or approval, and (3) recording or reporting. Cause: The Agency?s personnel size limits the ability for proper segregation of duties, however the control processes designed around this do not sufficiently reduce the risk of misstatement as a result of incompatible duties performed by the same employee. Effect: Increased risk of misstatement due to fraud or error. Recommendation: Auditor recommends the Agency review its current internal control processes for payroll and cash disbursements and consider making changes that mitigate the risks created by lack of segregation of duties. Auditor recommends the Agency use the services of a consultant to provide an additional level of review for all processes performed by the same employee. Management?s Response: See corrective action plan.
The Agency will hire the accounting firm of Byers Accountancy to provide oversight and review over the payroll and cash disbursement process on a monthly basis. Reviews and approvals will be documented.
Condition: During our audit we became aware that the Agency did not have proper documentation of Board approvals for expenses relating specifically to compensation and benefits. Although the Agency?s Board of Directors held discussions and provided verbal approval of policies and procedures, no written documentation was maintained. Criteria: Proper and sufficient evidence is required to be maintained by the Agency in order to support expenses recorded in its accounting system. Cause: The Agency has not properly retained documentation of discussions and details of Board approvals for expenses relating to compensation and benefits. Effect: Increased risk of misstatement due to fraud or error. Recommendation: Auditor recommends the Agency present all future Board approvals through resolutions which detail the transaction(s) and/or policies being approved. Board approvals which the Agency received verbally in prior years should be presented to the Board through a resolution stating retroactive implementation. Management?s Response: See corrective action plan.
Management will obtain written approval from Board members and document retroactive implementations for both policy and spending initiates.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on July 30, 2020. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by January 30, 2021, which was (2029 days ago).
What is a management decision? →Condition: The investment in securities, held by Morgan Stanley was recorded at cost. Income, expenses, unrealized losses were not recorded in the ledger. There was interest income, realized gains, and unrealized gains in the investment account. Criteria: Generally accepted accounting principles require that investments are recognized at full fair market value as of the date of the Statement of Financial Position. Cause: There is insufficient training of management in accounting for investment income, expenses, gains and losses. Effect: The Statement of Financial Position did not accurately disclose the fair value of the investment held by the custodian, Morgan Stanley. The Statement of Activities did not accurately disclose the investment income and advisory fee expenses incurred during the reporting period. Recommendation: We recommend the organization account for and record investment income, expenses, gains and losses on a perpetual basis throughout the fiscal year. The auditor suggested the organization hire a bookkeeper with the skills, knowledge, and experience to assist in recording investment gains, losses, income and expenses throughout the year.
The organization agrees with the finding and the recommended action has been implemented.
2018-001
Condition: The organization recorded reimbursements to employee's in 2019 for expenses incurred in the prior year. The employer retirement plan contributions for 2018 were not accrued in 2018 but expensed in 2019. Amounts exceeded materiality levels of tolerable mis-statement. Criteria: According to generally accepted accounting principles and the organization's accounting policies, the financial statement must accurately reflect total expenditures of federal awards in the period incurred. Cause: Cut off procedures not followed. Material weakness in internal controls. See "Independent auditors' report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in the accordance with government auditing standards", pages 19-20 of this report. Effect: Net assets overstated in prior period. Recommendation: We recommend the management strengthen the design of the internal controls and implement cut off procedures that will prevent or detect and correct expenditures that are recorded in the incorrect period.
The organization agrees with the finding and the recommended action has been implemented.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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